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Emerging Markets Surge 30% Amid Dollar Decline, Stimulus

10/8/2025

41 9 Full Breakdown

Summary

Story summary

TSMC accounts for 11% of the MSCI Emerging Markets index.
International stocks trade at 16.2x earnings versus Standard & Poor's (S&P) at 28x.
Emerging markets rally 30% this year, the largest in 15 years.
Dollar declines and China’s stimulus fuel momentum; Taiwan, Singapore, Indonesia hit record highs.
Thailand and the Philippines are expected to cut rates, supporting gains.

History

Historical Context

The MSCI Emerging Markets Index, which rose by 37% in 2007, highlighted the growing significance of emerging markets like Taiwan Semiconductor Manufacturing Company (TSMC), contributing 11% to the index. This trend reflects historical patterns where economic stimuli, particularly from China, have driven market performance, indicating a potential shift in global investment strategies towards these dynamic economies.

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Story summary

TSMC accounts for 11% of the MSCI Emerging Markets index.
International stocks trade at 16.2x earnings versus Standard & Poor's (S&P) at 28x.
Emerging markets rally 30% this year, the largest in 15 years.
Dollar declines and China’s stimulus fuel momentum; Taiwan, Singapore, Indonesia hit record highs.
Thailand and the Philippines are expected to cut rates, supporting gains.

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